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Now, regarding the topic, here is a basic idea.
What is the deal about Resale Price Maintenance?
Resale price Maintenance is the process which leads to an agreement between the manufacturer and the retailer regarding the price at which the retailer will sell the product (Resale price). The price may be set above or at par with the price floor or the price may be set below the price ceiling.
This practice ensures fair profit for the retailer and the manufacturer and prevents the Government from interfering in these matters. It also stops immense competition among retailers to reduce their price in order to attract more customers. Same way, consumers do not have to go around, bargaining for the lowest price because they know that the prices will be same everywhere.
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